RE: st: RE: Fractional Logit

I can't add much, but others may be able to say more.
However, it does seem clear on the face of it that
you are _not_ dealing with a binomial.
Nick
n.j.cox@durham.ac.uk
Rijo John
> Thanks Nick. I am trying to estimate the impact of spending on a
> particular commodity (say X) on the purchase of other goods
> and services.
> So I have the share of, say commodity Y (Its share in
> household budget) as
> the dependent variable and the expenditure on commodity X along with
> various control variables for household as explanatory
> variables. This can
> be a standrad OLS estimation. But since the depended variable is a
> fraction and is bound between 0 and 1 we go for fractional
> logit model.
>
> I hope this clarifies the problem. Given this I would like to
> know what
> would be the right choice of family and link in GLM.
>
> "family(gaussian) link(logit)" or "family(binomial)
> link(logit)" or some
> other combination?
>
> in "family(binomial) link(logit)" is it tru that stata takes
> all values
> other than 0 in the dependent variable as 1. If thats the
> case it does not
> take the budget share (absolute amount) information into
> account. It will
> only see if the budget share is absent or not.
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